5 Tips for Saving Money on a Low Income

Easy Ways to Save More When You Make a Little

It might be difficult to believe if one can save money when he has a low-income. However, with a calculated plan and some self discipline, you could really put more money in the bank even when you only make a little each month. Here are five easy ways to save money when you are living on a limited income.

Tackle your high-interest debt.

Tackling your debt head on will leave you with more money down the road. In order to saving more, you need to pay off the high-interest debt first, such as personal loans or credit cards. These types of debt often have outrageous fees and interest charges, and you need to prioritize them when paying off your debt. Then, avoid accumulating another high-interest debt as you go forward.

Cut down your housing costs.

Housing costs take a huge load of every family budget. Cutting down on housing costs might be difficult, especially when you have a low-income, but it can really help you put more in the bank each month. You should consider downsizing to a smaller home or living with a roommate if you are renting. If you own your place, consider refinancing your mortgage or renting out a room for additional income.

Plan your shopping.

Always use a written budget and plan your shopping ahead of time every single month. This prevents you from overspending because you can see how you will spend your money on paper before doing it in real life. One thing to remember when shopping is never pay full price if you don’t have to. You can opt for buying used stuff instead of the expensive, brand new ones. If you shop smart, you can get great deals on useful stuff that is hardly been used.

Another smart way to shop is by using coupons. If you think that couponing is stupid and won’t make big difference, think again. Using coupons can actually save you a large amount of money when you buy groceries and other necessities. There are many types of coupons, and you can find and learn how to use them on the internet. It might be confusing at first, but once you get the hang of couponing, you’d enjoy the great deals and the thrill. Again, never pay full price if you don’t have to, anytime possible.

Plan your meals.

Unexpectedly, money tends to leak on meals. Planning your meals ahead of time is a good way to save money overall. It allows you to better plan your grocery list and prevents you from reaching out for pre-packaged food that are often more expensive. Limit eating out only for special occasions and practice a habit of cooking your own meals at home. Homemade meals are obviously cheaper than the restaurant food—the latter costs at least four times more than the first one.

Cancel your subscriptions.

You can find everything online now, and it is usually a lot cheaper if not free. You can even still get the free broadcast channels and enjoy plenty interesting TV programming. Canceling your Netflix subscription won’t kill your nights; try downsizing it to a streaming only version for a start. Getting rid of your subscription and cable bill will save you more money for the future.